… a single step which I believe will improve my trading skill as I take time to ponder and document my trading journey. A journey which will bring me to achieve my aspiration of becoming a successful options trader, investor, author, trainer, traveller and philanthropist.
As this is my first post, I would like to share the reason why I choose to trade options over other financial instruments. I traded stocks equity, ETF, forex, futures, commodities prior “falling in love” with options. Options is the only instrument which allow us to trade conservatively, being wrong but still able to turn it into a winning trade, enjoy a greater margin of safety and timing the trade is not too important. I will provide more elaboration against each advantages in the future posts.
In my own classification, there are four stages to complete prior reaching the ultimate goal to become a consistent profitable options trader.
Stage 1: Understanding Options (No Trading Experience)
Stage 2: Hedging, Leveraging (Buying a Call or Put)
Stage 3: Income Trading (Spread Trading)
Stage 4: Achieving > 90% Profit (Advance Repair Method)
In the next post, I will use my own method to explain the basic of options. I will also elaborate the four stages in detail in the following post. Cheers!